Life insurance can seem confusing. Many people believe they don't need it, but the truth is that almost everyone could benefit from having a life insurance policy in place. A great reason to take out life insurance at any age is to cover final expenses, and maybe some outstanding debts. That applies to everyone, no matter if you are old, young, a smoker, covered at work, or just think that life insurance is too expensive.
There’s a lot of misinformation out there, but we're on hand to debunk some of the most common myths you may have heard. This way, you can be informed before deciding if buying a policy is worth it for you.
1 - I don’t need another policy as I have coverage through my job
One of the most common life insurance myths people have is that they don't need a policy because they are covered at work. The truth is that a life insurance policy through your workplace is only valid while you are employed there. If you change job, retire, or leave your company for any reason your life insurance policy through your employer will be cancelled. Not only that, but your coverage through work may not be enough for your own needs.
In these turbulent times, who knows what the future holds? Having a separate life insurance policy from your work coverage means that you and your family are covered no matter what happens in the ever-changing workplace.
2 - Life insurance is expensive
Many people think that life insurance is expensive, but the truth is that protection is available for as little as the price of two coffees a month1. Premiums will vary depending upon your age, health, lifestyle, and occupation, but life insurance remains extremely affordable for most Canadians. And when you consider the peace of mind that having a policy in place offers, it really is a myth that life insurance is expensive.
3 - I’m too young to need life insurance
Nowadays, it is common for young Canadians to have lots of debt. Student loans, paying the rent, and other monthly bills can all mean significant responsibilities. Young families may also have future financial needs to be met, especially for post-secondary education. Sure, you have your whole life to pay your bills, but suppose the worst happens. When you take out life insurance at a younger age, you will usually enjoy lower premiums. You'll also enjoy peace of mind, knowing that your family will be looked after financially should you pass away. One thing to remember is that taking out life insurance is the same as planning for retirement: the sooner you start, the better.
4 – As a smoker, I’m not sure if I can get life insurance
This is another life insurance myth. You can take out life insurance with Cover Direct if you are a smoker, but your premiums will likely be higher. That is because of the health risks associated with smoking. Keep in mind that it is important that you be truthful about your smoking status during your application process. Failure to be honest during your application may cause problems for your loved ones in the future when time comes to make a claim, as false or inaccurate information provides grounds to deny a claim.
5 – Life Insurance is only for people who want to leave an inheritance
The above is simply not true, as a life insurance payout can be used for any one of a variety of reasons. Most importantly, it provides an immediate form of financial protection for your loved ones in the event of your unexpected passing. As Canada’s most trusted direct life insurance provider*, Cover Direct offer affordable, straightforward premiums from as little as $9.66 per month1. This allows you some security in knowing there is always financial protection in place for your loved ones. Life can issue setbacks and our ability to support our loved ones is a long-term goal that is susceptible to disruption. Securing a policy with Cover Direct will always provide your family with a degree of financial protection.
6 – I've heard it’s better to invest than get life insurance
This myth assumes that we all eventually get to a place where we have earned to enough to pass on to our loved ones. However, we know life is not always that straightforward. With a life insurance policy, you’re making a certain investment that your family will have some financial protection in place. If you’re wondering how life insurance works, just remember that applying for coverage is easy2 and our team of trusted advisors are on hand to answer any questions you might have when you need them. You can give them a call toll-free at 1-844-990-4254, or get a quote.
7 – Life insurance is pointless as I don’t have any dependants
One of the main driving factors of buying a life insurance policy is that the payout can be used for many different reasons. Some of the most important reasons don’t necessarily revolve around money needed for dependants. For example, it can be used to help pay for your final expenses, such as funeral, burial or cremation costs. Many people may want to leave something behind to pay off outstanding debts, or mortgages they have left behind. It can even simply be used as a gift for someone close to you. The fact is that the choice is yours, and peace of mind is not something that only people with dependants need. Learn more by reading about the types of life insurance to find out what sort of policy may be right for you.
8 – I’m not sure if I’m suitable for life insurance as I have a health condition/illness
Living with a long-term illness or health condition can affect all sorts of areas in our lives. It’s only natural to think it may do the same when trying to get a life insurance policy. However, getting coverage can be a smart idea for those whose ability to work is impacted by illness. In Canada, we are lucky to have a few benefits that are offered to surviving spouses and dependants. However, these benefits may not be sufficient to cover all of their needs. With Cover Direct, you can take affordable coverage from as little as $9.66 per month1, allowing you a seamless and straightforward way to offer some financial protection for your loved ones without the worry of fighting through red tape or battling stacks of needlessly complicated paperwork.
9 – Life insurance is only for people with high-risk jobs
While it’s true that people in high-risk jobs such as pilots or construction workers will have been strongly advised to get life insurance, the reality is that accidents or unexpected illnesses can happen to anyone, any time in our lives, regardless of our health status. This is precisely what can make buying a policy so important. With Cover Direct, you can find straightforward and genuine policies that suit your needs to protect your loved ones in case the unexpected happens. Read more about how much life insurance you may need to discover what amount of coverage is right for you.
10 – How can I know that life insurance is worth it for me?
As Canada’s most trusted direct life insurance provider*, Cover Direct provides simple, straightforward coverage which is easy to apply for2. We understand that peace of mind is only achieved when you’re provided with firm knowledge that your loved ones will have some form of financial protection in place when you’re gone. That’s exactly what we provide. A guaranteed payout as long as you pay your monthly premiums, through accessible coverage that you can buy directly from us. Better still, you can get all this without the hassle of dealing with brokers or unnecessary health checks such as blood tests and medicals.
Call us to discuss life insurance
We hope this article has clarified some life insurance myths and helped you to decide if you need life insurance. If you still have questions about taking out life insurance from Cover Direct, visit our FAQ page or speak with our team of trusted advisors at 1-844-990-4254 for a pressure-free, no obligation quote.